India is among the three least-favoured Asian stock markets, according to a survey by BofA Securities. The research found that 10% of global fund managers are underweight on Indian equities from a 12-month investment perspective. This sentiment comes as global fund managers anticipate modest returns of less than 5% from Asian stocks (excluding Japan) over the next year.
The survey included responses from 182 panelists managing $513 billion in assets under management (AUM) and was conducted between January 10 and 16. Additionally, 111 panelists managing $214 billion participated in regional-specific questions.
China, with 23% of fund managers underweight, and Thailand, at 13%, join India as the least-favoured markets in the region. In China, the recent struggles to maintain gains following a sharp rally in September have tested investor confidence, contributing to its inclusion among the least-favoured markets.
The findings underscore the cautious approach investors are adopting toward Asian markets amid prevailing economic headwinds and regional uncertainties.
